RWE: Why is knowledge of PED important? [TO POST, CLICK THE HEADING AND LOGIN] by Bob Bonus

Uber dynamic pricing

2025-10-14 04:08:10 UTC

Knowing PED is important to Uber as it relies on knowing how elastic or inelastic demand is at different times and places so it can use dynamic (surge) pricing effectively. When demand in an area suddenly increases and passengers are less sensitive to price, Uber raises fares. This does two things: it increases revenue from riders who are willing to pay more, and it encourages more drivers to move to that area to meet the surge in demand.

Passengers who don’t want to pay the higher price can wait or choose another option, which helps balance supply and demand. Once enough drivers are available and demand becomes more price-sensitive again, Uber lowers prices back to normal. This is why understanding PED is essential to how Uber manages both profit and availability.

UK vape and cigarette tax

robbounous — 2025-10-14 16:10:46 UTC

The UK government knows that the PED for vapes and tobacco is relatively inelastic amongst adults, who generally earn more, so it can raise the price via a tax and make a large amount of tax revenue. However, it is also aware that youngsters with lower incomes will have more elastic demand, as the % of their income is greater, so this may discourage them from continuing to consume these demerit goods before they become too heavily addicted.

UK sugary drink tax

aukaelan99 — 2025-10-30 01:21:52 UTC

In 2025, pay a tax of £1.94 per 10 litres for drinks with more than 5g of sugar but less than 8 grams of sugar per 100ml. Pay a tax of £2.59 per 10 litres on drinks with more than 8g of sugar per 100ml. This is an increase from £0.18 per litre and £0.24 per litre in 2018. This was to lower the obesity rates in the UK which has been seen as successful as it prevented 5000 cases of obesity every year among girls in their final year of primary school and reduced dental appointments

basketball gambling tax

j4yna — 2025-10-30 01:26:45 UTC

50% of profit from basketball gambling is taxxed and the government wants to discourage it so they put the tax and are also able to earn tax revenue

Tax on sweetened beverages to depend on sugar levels

2025-10-30 01:32:03 UTC

from 2026, the tax applied on sweetened beverages will be based on their sugar content

Oasis concert tickets

isabella_carthery — 2025-10-30 01:37:20 UTC

The PED for Oasis concert tickets is very inelastic - since there are no substitutes and a limited supply (the capacity of the venue), as well is it being a reunion (could not happen again - short-term). Therefore, Ticketmaster used the high demand for the tickets to raise prices and thus increase revenue, knowing they would not lose many consumers.

WHO launches bold push to raise health taxes and save millions of lives

2025-10-30 01:41:18 UTC

The Initiative has an ambitious but achievable goal of raising US$1 trillion over the next 10 years. Between 2012 and 2022, nearly 140 countries raised tobacco taxes, which resulted in an increase of real prices by over 50% on average, showing that large-scale change is possible.

richard_shum1 — 2025-10-30 01:54:00 UTC

^{Knowledge of PED is important to government cause alcoholic drinks are relatively inelastic. Government need to add more taxes depends on the earning amount of citizens, because it's inelastic for many festivals, special moments and people who addictive on it.}